The rupee movement, which fell to record lows against the dollar in the week gone by and impacted markets, will keep investors cautious.

The forthcoming week is also likely to see stock-specific trading as quarterly corporate earnings pour in. Besides, global cues will influence the markets in view of persisting euro-zone debt crisis.

Experts said markets will see volatile sessions ahead of settlement in May's Futures & Options contracts and GDP data on Thursday.

Meanwhile, the government has said it will watch global oil prices and rupee-dollar rate for "a few days" before taking any decision on rolling back the rates.

According to Unicon Financial Solutions CEO Gajendra Nagpal: "Much depends on the what happens on the diesel front. The government not succumbing to pressure to rollback petrol price hike is a good news for the markets and the economy. At present, the mood is very cautious among investors and going ahead markets would be range-bound and volatile."

Investors cheered the petrol price hike, seeing it as a step taken towards fiscal consolidation. The BSE Sensex on Thursday (a day after the hike) gained 274 points -- the highest in a single day since March 30.

However, the optimism faded amid reports that petrol price hike may be partially rolled back. The Sensex on Friday ended 4.48 points or 0.03 per cent lower.

Auto and cement shares are expected to be in focus as companies from these two sectors will start unveiling monthly sales data from Friday.

"With the bearish broader market sentiment markets may see a gap-down opening on Monday. With derivative expiry on Thursday volatile trading sessions will be witnessed in the markets. Also global developments will be a crucial factor," Geojit BNP Paribas Financial Services Head Research Alex Mathews said.

Investors will also keenly watch the US jobs and GDP data later this week.

The BSE 30-scrip benchmark Sensex snapped its 4-week losing streak by recovering 65 points to end the week at 16,217.82.